Automotive News - March 31, 2008 - (Page 17)

MARCH 31, 2008 • 17 Gulf States’ owners private, but visible Lindsay Chappell lchappell@crain.com The father and son play an influential role in the auto industry of the southern United States. Four decades of working with Toyota Motor Corp. have made them billionaires. And now they are poised to become even wealthier from their automotive activities as Toyota’s pickup business grows. But chances are you’ve never heard of them. Which is exactly what they prefer. Although Texans Thomas and Dan Friedkin can be spotted at air shows and pursuing other wealthy hobbies, when it comes to Toyota’s U.S. business, they remain in the background. Thomas Friedkin, 72, and his 43-year-old son, Dan, own Friedkin Cos., a Houston automotive holding company that owns Gulf States Toyota Inc. An independent Toyota distributor with exclusive rights to Texas and four other states, Gulf States is ranked by Forbes as one of the biggest privately held corporations in the country, with annual revenues estimated at $4.5 billion. The only comparable company in the United States — the privately held JM Family Enterprises, of Deerfield Beach, Fla. — similarly distributes Toyotas, provides services for Toyota dealers in five states and owns a Lexus store. JM estimates its combined revenues at about $11 billion annually. In contrast to the Friedkins, the highly visible Jim Moran presided over JM Family Enterprises. Moran’s name and reputation were clearly linked to Toyota’s business in the southeastern United States. Jaws — The Revenge. His Hollywood career is detailed on the movie fan site www.imdb.com. The family also owns a fleet of vintage warplanes that they display and fly at air shows. Dan Friedkin, vice chairman of Gulf States, can be found on the Internet piloting a World War II-era P-51 Mustang. A brief Internet search also turns up photos of Dan Friedkin hunting in Africa and New Mexico, where he won acclaim for winning a hunting competition, according to the New Mexico Department of Game and Fish. He also is featured on the cover of an instructional deer hunting DVD, marketed online under the title “Muley Crazy Volume VI — Trophy Mule Deer Overdose.” In 2005, Dan Friedkin was appointed a commissioner of the Texas Parks and Wildlife Department. Last year, as commissioner, he was credited with co-founding an annual bass fishing tournament called the Toyota Texas Bass Classic. Dan Friedkin’s hunting and fishing exploits have helped affiliate Toyota with Texas outdoorsmen. Hynes says the father and son like to stay out of the limelight to protect their family’s privacy. He declines to discuss the company’s business. n’t If Martin Ca Make Your Newspaper Ads Work, Then ” NO ONE CAN! “ DARROW AUTOMOTIVE GROUP Since 1969, Martin Schleifer and his team have set the industry standard for automotive advertising and marketing for thousands of dealerships. In today’s economic environment, more dealers are turning to MSA Advertising for strategies to dominate their markets.We’ll show you what’s working across the country! • Proprietary Internet Advertising Program • Innovative Broadcast/Print/Direct Mail • Annual Strategic Media Plans • Advertising Specialties/Promotional Products • In-House Production Facilities • Co-op Compliance And Management • We Work With Dealers’ In-House Agencies Dodge • Infiniti • Hummer Rolls Royce • Bentley Toyota • Nissan • Chrysler • Hyundai • Kia Suzuki • Honda • Dodge • Jeep • Mazda Russ Darrow Good for business Friedkin’s tournament sponsorship helped affiliate the Toyota brand with Texas outdoorsmen just as Toyota was launching its full-sized Tundra pickup last year. The Tundra’s success is critical to Gulf States’ growth, which looks promising over the next five years. Gulf States is spending $50 million to construct an inland vehicle processing center in Temple, Texas, supplementing its port operation in Houston. The new processing capacity will accommodate increased factory volumes made possible by Toyota’s push for full-sized pickup sales. Toyota built its Tundra assembly plant in the Gulf States market of San Antonio specifically in hopes of fanning Texas pickup sales. Last year, Gulf States processed and distributed about 250,000 vehicles for its Toyota dealers. According to the company, its expansion plans would allow Gulf States to process as many as 475,000 vehicles a year after 2011. Clearly, the Friedkins do not need the limelight to build their auto business. c Visibility But staying in the background of their Texas auto empire and staying out of the public eye are two different things. The Friedkins have made headlines pursuing such interests as big game hunting in Africa, philanthropy, political donations, airplane collecting, wildlife research and dining at the White House. Thomas Friedkin, whose own father founded Pacific Southwest Airways in 1949, was a pilot with the airline before it merged into US Airways, which now is America’s fifth-largest domestic airline. He parlayed his flying skills into a career as a stunt pilot in Hollywood. Long after his Toyota dealings had made him a millionaire, Friedkin continued to act and appear as a pilot in movies such as Uncommon Valor, Mullholland Falls and Privacy The Friedkins’ empire serves 150 Toyota-Scion dealerships in Texas, Oklahoma, Louisiana, Mississippi and Arkansas. But don’t look for either Friedkin to be popping up in a Toyota TV commercial in New Orleans or Dallas anytime soon. “They’re very private people,” says Toby Hynes, a former Ford Motor Co. executive who is now president of Gulf States. “They don’t want to be thought of as operators. They prefer to be thought of as investors.” TOWBIN AUTOMOTIVE DARROW AUTOMOTIVE GROUP GANLEY AUTO GROUP GUNTHER VW-MAZDA-KIA The #1 VW Dealer In America Buick • Pontiac • GMC Hyundai • Subaru • Suzuki The #1 Group In Ohio WILLIAM LEHMAN PRESTIGE AUDI PENSKE Mercedes knows its AMG unit must get greener Rick Kranz rkranz@crain.com We take a look at the new SL ➤ 32 to produce more horsepower and faster vehicles. The newest AMG vehicle is the 2009 SL63 AMG, packing a 525-hp 6.3-liter V-8. But like other automakers selling cars in the European Union, Mercedes must cut carbon dioxide emissions drastically. That will affect vehicles sold in the United States. The EU says automakers must average 130 grams per kilometer or less in 2012. “That is not easy,” Zimmerman said this month at a Mercedes event in Palm Springs, Calif. “Together with Mercedes we are around 170 grams, so it is a long way to go.” In 2020 the EU standard plummets to 95 grams per kilometer. Today, the tiny, two-passenger, diesel-powered Smart produces 95 grams per kilometer. By comparison, the 525-hp, 6.3-liter PALM SPRINGS, Calif. — Is Mercedes-Benz’s AMG performance division at risk of becoming a dinosaur? AMG executives are struggling with how to proceed in a world that demands much lower carbon dioxide emissions and fuel consumption. They say Mercedes’ high-horsepower specialty unit must reinvent itself and redefine performance with smaller engines and even hybrids. “Believe me, the world will change dramatically in the next 10 years,” says Wolf Zimmerman, COO of Mercedes-AMG. Each Mercedes that receives the AMG treatment gets horsepower, braking, handling and other enhancements. AMG versions are the top performance models in their range. Since its inception, AMG has been limited only by its ability V-8 produces 330 grams per kilometer, Zimmerman said. Zimmerman expects continued interest in performance vehicles, but says: “We are working on defining performance.” Maybe the solution in 2020 is hybrid technology, he says. “We have to look at what we can do on the engine side and do everything we can to reduce fuel consumption,” he says. “But we have to look at all the other things, like hybrids. “In 2022 or so, perhaps you have to put in an engine only as a range extender. Such a vehicle would be battery powered, using an engine that would run only to recharge the vehicle’s batteries.” Last year Mercedes sold about 20,000 AMG vehicles worldwide. Just over half were sold in the United States. AMG’s sales record is a little more than 22,000 vehicles. c The #1 Audi Dealer In America Honda Mission Valley Honda and Mazda Of Escondido The #1 Group In Minnesota Ford • GMC • Hyundai • Dodge • VW Kia • Chevrolet • Cadillac • Chrysler Jeep • Lincoln • Pontiac • Toyota BMW • Mini • Cadillac • Rolls Royce DENNY HECKER BRAMAN MIAMI METRO FORD TOYOTA SUNNYVALE BUD BROWN CHRYSLER HOLLYWOOD CHRYSLER-JEEP UNIVERSITY DODGE Martin Schleifer Gigi Turkel Paul Rosen Autobytel, of Irvine, Calif., is an Internet marketing services company. AUTOBYTEL INC. — Jan Thompson, EDMUNDS INC. — Stephen Berkov, Edmunds, of Santa Monica, Calif., maintains Web sites designed for automotive consumers, enthusiasts and insiders. JATO DYNAMICS INC. — David Mitchell, 39, to president of the 58, to the board of directors. She is executive vice president of Omnicom Group’s diversified agency services division. Thompson 39, to executive director of client strategy. He had been director of marketing and brand innovation at Audi of America Inc. Berkov Americas. Simultaneously, he had been director of new business development at Pied Piper Management Co., a developer of dealership sales and marketing programs in Pacific Grove, Calif.; and executive vice president of sales and marketing at sophus3, an e-business consultancy in London. He remains a member of the Mitchell boards of directors of both Pied Piper and sophus3. JATO Dynamics, which has North American headquarters in suburban Detroit, provides automotive data. For a presentation at your dealership, please contact Paul Rosen direct at MAIN OFFICE: 305-442-7272 e-mail: paul@msaadvertising.com 305-495-6100 5 REGIONAL OFFICES TO SERVE YOU CORPORATE HEADQUARTERS: 2915 Southwest 27th Avenue Coconut Grove, Florida 33133 http://www.imdb.com

Table of Contents Feed for the Digital Edition of Automotive News - March 31, 2008

Axle strike leads GM to alter production plan Industry expert Ferron joins Automotive News Group Hummer adds E85 models Lear expands in China Ford spills the beans on car seats Concern ... confidence ... curiosity — welcome to America, Tata Expect most Ford-bred executives to stay put Tip for Tata: Let British brands be British brands Dana CEO sees need for growth in Asia Chrysler: Any deal for partner would be done by Cerberus Farley retools Flex marketing strategy Malibu attracts import-minded buyers European purchasing execs to suppliers: Costs must fall Reynolds removes dealership modems New Saturn ads will promote Aura, Vue, Outlook This Spring Hill launch is a fraction of the first one GM works on small global car Hal Riney, Saturn campaign creator, dies Dealer sours on China importer Secret computer lets Nissan planner peek into future XM-Sirius merger: Lower prices, more choices? Key Chrysler product developer resigns Ford's new boss in HR plans no major changes Wagener to replace Pfeiffer as Mercedes design chief It's time to break the glass ceiling Autos don't cause all global warming Toyota plumbed the depths of Scion Customer loyalty is serious business Future bright for Tata brands Dauch sends wrong signals as Axle strike drags Yanase opened Japan to Western cars Fewer dealers, sure, but more brands What if Ahn falls short? Want to inspire Lori Queen? Just say no Hanwha to build GM Powertrain assembly line Toyota enters untapped Korea, home of Hyundai James O'Rourke Jr. Picture This -- March 31st, 2008 Lexus pays dealers for innovations Suppliers to the 2009 Dodge Journey Ricardo center has battery focus Howa USA opens interior parts plant in Kentucky N.Y. show suggests a future of smart powertrains, muscle BMW sees new models as sales saviors Ford contract has unique take on core jobs 6 more PACE-setters in auto innovation Buy-here, pay-here may grow Dealers Mercedes SL: A fresh face — with 1 flaw Ex-Chrysler design chief John Herlitz dead at 65 Future could be bright for Jag, Land Rover Land Rover in good shape, but challenges remain Fuel economy fines loom for Tata As segment shrinks, Chrysler minivan output takes a big dip Mercedes names 27 AMG dealers Continental to cut jobs Cobalt SS price: $22,995 Kia opens Ga. training center Nissan idles Mexico plant Plastech legal bill: $1 million for a month Magna will add 3 plants in Mexico El Camino diehards say Pontiac G8 should have been a Chevy No 2nd chance for Nasser, other Ford alums Buick grabs a name from the past After short list, a short stay for Laymon Lori Queen or Ellery Queen? Daimler's mum on BMW Southern supplier strategy Tracing the Camaro's bloodline Alfa searches for a U.S. factory

Automotive News - March 31, 2008

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